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Shell responds to boom in Asian motorcycle market

Shell Lubricants highlights its premium motorcycle oil in six Asian growth markets through its latest creative marketing campaign to reach today’s new motorcycle customers.
A production crew member behind the scenes in Indonesia

A production crew member behind the scenes in Indonesia

The current number of motorcycles globally is 350 million and is expected to rise to 500 million by 2015. Today, motorcycle oils account for 3% of the global lubricants market and this share is projected to more than double in the coming three years. The Asia-Pacific region is currently the largest market for this oil claiming approximately 76% of the global market.*

The region is expected to account for 80% of all new motorcycle sales for the foreseeable future, with China, India and Indonesia as the top three markets respectively.  India, currently with over 13 million bikes following a 14% year- on-year growth in recent years, is considered to be catching up with China’s strong fleet of 25 million motorcycles. Motorcycle sales growth in China have halved to 8% over the last two years, primarily due to more consumers upgrading their motorcycles to cars. Meanwhile, the Indonesian motorcycle market is also booming with an ownership ratio of one bike for every two persons.  

Motorcycle owners in the West and East use their bikes for very different purposes. Riders in the West use their bikes more for leisure whereas riders in the East are focused on personal mobility. In contrast with the West, the age profile of the rider and age of bikes in the East is much younger: three quarters of the bike owners in India, Indonesia, Thailand and Vietnam have bikes that are less than three years old.

The Shell Advance range of motorcycle oils

The Shell Advance range of motorcycle oils

To ride this wave of extraordinary motorcycle growth in Asia, Shell has joined forces with FOX International Channels in the region to showcase its premium motorcycle oil, Shell Advance, via a new TV programme – Freedom Riders Asia. The programme consists of six 30-minute episodes profiling unique biking cultures in six Asian countries (Malaysia, Philippines, India, Indonesia, Vietnam and Thailand).  Shell Advance was developed with responsive technology to give bikers the freedom to enjoy their ride. This includes benefits such as reliability of oil performance, enhanced bike control (with smoother gear changes and slippage prevention) and reduced vibration and engine noise.  

“Shell’s global lubricant business has a track record of responding to challenges and opportunities and we are excited about going after this opportunity in the evolving motorcycle oil market in Asia. We look forward to introducing more customers to our Shell Advance motorcycle oil product. The Freedom Rider Asia programme is just one engaging platform that allows us to do this. We will be airing the series in 17 countries from May 2013 onwards,” said Colin Abraham, Vice President Marketing, Shell Lubricants.

Trikes used as modes of public transport in the Philippines

Trikes used as modes of public transport in the Philippines

The Freedom Riders Asia show depicts the strong emotional connection between the biker, the bike and the biker’s environment. The episodes will feature each country’s culture, local biking community and elements of specific interest to bikers. Footage shows beach biking in Bali, Indonesia, a ride across a forest on the stunning island of Palawan, Philippines and racing on Sepang International Circuit in Malaysia.

Shell understands that a motorcycle is more than just a mode of transport for riders – it is a lifestyle choice that offers the rider more freedom on the road.  Shell Advance is specially formulated to provide reliability, control and enjoyment, allowing bikers to experience the road at its best.

This campaign also has a digital dimension to it, for the markets where the programme was filmed, with a dedicated YouTube channel showcasing behind the scene footage, details on the individual rides, the bikes and the all-important oil.

Freedom Riders Asia premieres Sunday 19 May 2013 at 21.00 HKT on: STAR Sports (SEA/ Malaysia/ Indonesia, Singapore), FOX Sports Plus (SEA/Malaysia) and ESPN India.  You can find more details here.

*Source:  Kline and Company’s “Lubricants for Motorcycles, Scooters, and Mopeds: Global Market Analysis and Opportunities 2013”

 

ENQUIRIES:

Shell International Media Relations +44 (0) 20 7934 5550                                               

Images are available on request and more video content can be viewed at:  http://www.youtube.com/shelladvance/

NOTES TO EDITORS

  • Engine oils account for over 95% of the total motorcycle oil (MCO) market, with the balance consisting of products including fork oils, rear suspension oils, greases, and chain oils.

  • Shell owns market leading brands in many countries and segments. These products are available in more than 100 countries worldwide. Shell has a consistent range of automotive, transport, industrial, grease and transmission fluid brands available on a global basis. Each brand has a number of different formulations.

  • The Shell Advance motorcycle oil range offers a simple portfolio, featuring unique bike application descriptions for each product, simplified tier names and distinctive bottle colours. The Shell Advance range is designed to make it easy for customers to choose the right oil with a range that is relevant and easy to navigate.

  • The Shell Advance range of motorcycle oils has been developed with a special formulation that increases the reliability of oil performance by removing deposits and maintaining viscosity. Shell Advance oils are designed to offer greater control and improved responsiveness through smoother clutch engagement, reduced clutch slippage and smoother gear shifts. Shell Advance oils contain stability improvers that help dampen vibration and reduce engine noise.

  • The Shell Advance motorcycle oil range is divided into two clear tiers: one for 4-stroke engines and one for 2-stroke engines. 

About Shell Lubricants

The term “Shell Lubricants” collectively refers to Shell Group companies engaged in the lubricants business. Shell sells a wide variety of lubricants to meet customer needs across a range of applications. These include consumer motoring, heavy-duty transport, mining, power generation and general engineering. Shell’s portfolio of lubricant brands includes Pennzoil, Quaker State, Shell Helix, Shell Rotella, Shell Tellus and Shell Rimula.  We are active across the full lubricant supply chain. We manufacture base oils in eight plants, blend base oils with additives to make lubricants in over 50 plants, distribute, market and sell lubricants in over 100 countries.

We also provide technical and business support to customers. We offer lubricant-related services in addition to our product range.  These include: Shell LubeMatch –the market leading product on-line recommendation tool, Shell LubeAdvisor - helps customers to select the right lubricant through highly trained Shell technical staff as well as online tools, and Shell LubeAnalyst - an early warning system that enables customers to monitor the condition of their equipment and lubricant, helping to save money on maintenance and avoid potential lost business through equipment failure.

Shell’s world-class technology works to deliver value to our customers.  Innovation, product application and technical collaboration are at the heart of Shell lubricants. We have leading lubricants research centres in Germany, Japan (in a joint venture with Showa Shell), the UK and the USA.  We invest significantly in technology and work closely with our customers to develop innovative lubricants. We have a patent portfolio with 150 + patent series for lubricants, base oils and greases; more than 200 scientists and lubricants engineers dedicated to lubricants research and development.

Customer benefits include lower maintenance costs, longer equipment life and reduced energy consumption. One of the ways we push the boundaries of lubricant technology is by working closely with top motor racing teams such as Scuderia Ferrari. These technical partnerships enable us to expand our knowledge of lubrication science and transfer cutting-edge technology from the racetrack to our commercial products. 

Cautionary note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this release refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this release, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2011 (available at www.shell.com/investor and www.sec.gov - opens in new window). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, 16 May 2013. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release. There can be no assurance that dividend payments will match or exceed those set out in this release in the future, or that they will be made at all.

We use certain terms in this release, such as resources, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov - opens in new window. You can also obtain these forms from the SEC by calling 1-800-SEC-0330

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